These days, the Forex industry has become highly competitive. Therefore, brokers have to offer favorable trading conditions in order to stay afloat.
Most brokers offer fixed spreads, which is not always beneficial for traders as you never know what criteria those fixed spreads are based on (genuine interbank liquidity has nothing to do with fixed spreads). On the other hand, floating spreads may seem less beneficial at first sight. But floating spreads are more transparent and are given by the world’s major liquidity providers. In this aspect, broking companies that offer floating spreads look more reliable.
Whom would you choose to trust your money with? The question is rhetorical. Obviously, you would choose a more reliable partner.
Through floating spreads, the broker gives you access to genuine interbank liquidity at minimal costs. This also implies (almost) instant execution of orders, real market quotation. Yet, broker charges you with a standard fee – 0,1 pips per 1 lot and $10 per a trade that is worth $100 000. Actually, it used to be so. Then Larson&Holz IT Ltd reduced the fee from $10 down to$6.
CompassForProfitableTrading
Your trading capital is a certain share of you wealth you allocate to multiply it. Obviously, it does matter how much you spend on fees, spreads and commissions.
According to Marina Kurandina, a representative of Larson&Holz IT Ltd’s Russian office, the company strives to offer the most competitive trading conditions, including minimal fees. That is why Larson&Holz IT Ltd introduced Forex Family, an innovative marketing program designed to minimize traders’ expenses. It includes a 5-level system of spread cuts (-0.5 point at each stage).
On October 1st, the company introduced a new progressive pricing system for all currency pairs. This also makes it easier to sent clients’ orders directly to major liquidity providers (i.e. interbank), which gives them an opportunity to get their orders executed at best prices available.
With Larson&Holz IT Ltd, everyone has an opportunity to trade real Forex at minimal costs and on favorable conditions.
Moreover, floating spreads along with “Market Execution” make it possible to hedge trades instantly and efficiently. This means that any client of Larson&Holz IT Ltd gets a complex of services that exclude non-market risks, simultaneously minimizing trading risks and expenses (fixed spreads cannot provide the same guarantees).
As you know, floating spreads vary depending on the current market situation. If the market is calm, spreads start from 0.1 pip. The average daily spread is around 2 pips.
for major currency pairs and 3-4 pips for cross-pairs.
The chart below, courtesy of Larson&Holz IT Ltd, shows the spreads and commissions for common trading instruments:
As you can see, the floating spread system is attended by reduced commissions. Most broking companies that offer floating spreads still charge their clients with $10 per standard lot while Larson&Holz IT Ltd has reduced the commission down to $6 per standard lot.
Floating Spreads: Exert Opinion
According to Eugene Olkhovsky, ’s leading expert in financial markets, more brokers (especially Western ones) start offering floating spreads.
This looks quite natural as floating spreads create favorable conditions for the cooperation between the broker and the trader.
In particular, the trader gets:
· Access to genuine interbank liquidity
· Opportunity to trade big lots
· No third-party involved
· Instant execution of orders etc.
What can be better than achieving your goals at minimal costs? In this aspect, Larson&Holz IT Ltd does allow traders to save money while trading in the real Forex market. Therefore, the company can be a good choice for those how treat Forex trading seriously.
